State-owned Landbank of the Philippines’s sweet deal for OFWs launched yesterday is described in this article.
An annual interest of 7.0% and a maturity of 5.5 years is not bad for anyone’s portfolio. Experts always tout diversification and to do that properly, the risky part should not overshadow the secure and boring part. How to cut the cake exactly depends on personal risk appetites, of course.
It is a fact of life that stocks are sexy and deposits and bonds are boring. ☺ Most of the times, boring is good.
I have an OFW’s sister. You think I qualify?
Numbers to remember:
P2 billion – volume of securities being offered, technically called long-term negotiable certificates of deposit (LTNCDs). (there’s your tongue-twister for the day)
5.5 years – maturity of the securities. No pre-termination is allowed, but the securities can be used as collateral for loans or sold to another investor
May 16 – end of the offering period.
7.0% - annual yield of Landbank’s LTNCDs (practice rolling your tongue!)
5.5% - current annual yield of traditional time deposits of the same maturity
P13,699 – what an OFW needs to get P20,000 in 5.5 years
P250,000 – maximum investment per OFW
20% tax – will not be imposed on the offering
Read the article here.
April 29th, 2008 at 7:38 am
With HSBC saying inflation could go up to 8% this year, you lost interest for 2008 already…(-1%)